There are a number of ways to improve your credit score, and as a result, show lenders and your adviser that you are able to responsibly manage your finances.

Proof of address

Make sure you have proof of address by signing up for the electoral register and ensuring all bills and financial
commitments are registered to your address. This way it’s easier to confirm your identity for any Advisers and
Lenders.

Ensure you’re responsible with your credit card

Available credit refers to the difference between your outstanding balance, and your total credit limit.

If, at any point, your available credit is low, your adviser and any potential lenders may think that you are struggling financially.

Our top tip is to make sure you avoid ever withdrawing cash from your credit card. This goes against your credit score, and will appear as though you’re withdrawing money because you have no money in the bank.

Even if this is not what is actually happening.

Have a history of accounts

Prove you have a good financial history by having a variety of previous bank accounts. For example: a savings account, ISA, credit card, etc. This will allow your Adviser the opportunity to
view where your credit has
previously gone.

Pay on time

This may sound pretty obvious, but paying on time shows that you are capable of managing your finances and paying bills, which is great when you’re trying to apply for a mortgage.

How much can I afford?

Finding out how much money you can borrow, will help you determine what home you will be able to
buy based on the budget.

One way of finding out how much you can, potentially, borrow, is through using online affordability calculators. These are a quick and easy way to get an idea of what may be available to you.

You do this through putting in your income against your outgoings, and it’ll do the rest, by calculating a potential total you can borrow.

However, a mortgage adviser will be able to fully assess your financial situation, including your lifestyle, to ensure you don’t over-stretch when it comes to getting the right mortgage for you.

What is a Decision in Principle?

A Decision in Principle, also known as a DIP, is certificate stating how much a lender is willing to lend you.

We advise that before putting an offer on a house, or applying for a mortgage, you speak to your adviser who can help you apply for a DIP ahead of time. The ‘decision’ is made through running a number of checks including looking at your outgoings, income and credit score.

Having a DIP ready shows estate agents and sellers that you’re ready to move quickly when it comes to buying, and already know how much you can borrow, subject to your full mortgage application.

Help to Buy Shared Ownership

Can’t quite afford a 100% mortgage of a home?

The Help to Buy Shared Ownership scheme gives you the opportunity to buy a share of between 25% and 75% of your home’s value, then pay rent on the remaining share, and then start ‘staircasing’.

Staircasing refers to the process of increasing the size of your mortgage until you own the property in it’s entirety. Using the Shared Ownership scheme may be the right fit for you if you’re a person, or couple, who may not be able to get the money for a mortgage that is big enough to buy a home, but s you can own at least part of the property you live in, and benefit from any increase in value over time.

The other great thing is that you’ll be able to benefit from long-term security, which is better than just renting a
property.

How does it work?

The Shared Ownership scheme relies on you getting a mortgage for half the purchase price of a property, and then paying a deposit of 5% on this amount.

This would make it easier for anyone on a lower income or those who find themselves struggling when it comes to saving a deposit. Of course, every scheme comes with eligibility conditions. You can use this scheme if:

• Your household earns £80,000 a year or less outside of London;
• Your household earns £90,000 a year or less in London;
• You are a first time buyer;
• You used to own a home, but can’t afford to buy one now;
• You’re an existing shared owner looking to move.

Time to start looking

When it’s time to start viewing properties, let’s face it, it’s ultra exciting, as it’ll be the first time it begins to look like a reality.

Your dream home checklist

Before you start viewing properties, online or in person, it’s worth writing down every ‘must-have’ from your house. This might include:

• Local shops and supermarkets;
• A big garden;
• A kitchen-diner;
• Good space for parking;
• Transport links.

If you write a list beforehand, you can find out whether the property is right for you, before you take the time to
book a viewing.

Where can you look for your home?

• Online using websites like Zoopla,
• Rightmove and estate agents
• websites;
• Talking to property developers;
• In local newspapers;
• Looking at for sale boards;
• Asking friends and family;
• Viewing show homes;
• Auctions.

Things to keep an eye out for

In the area you wish to purchase is it…

• Near local shops?
• Near good transport links?
• In a peaceful area?
• In a busy area?
• Near local schools?
• Near local nurseries?
• Offering good parking?

Property inside and outside

Does your property include…

• Off-road parking?
• A garden?
• Security? (Alarms, gates, etc.)
• Cracks?
• Mould or damp?
• Good guttering?
• A good roof?
• Outside

Inside

• An energy rating?
• A heating system?
• Mould or damp?
• Big rooms?

Make sure the property meets your wish list. And if you’re worried about structural problems, don’t panic, these are picked up in the survey (should you choose to have one), but keeping an eye out for signs of damp and large cracks, could prepare you ahead of time.

Once you’ve found that ‘dream house’ that fits most of your wish list, and you have your Decision in Principle (DIP), you can make an offer!

Surveys, Solicitors, and Property Chains

Surveys

If you decide to have a survey carried out on a property (at a fee), you can have some invaluable things highlighted that may have remained hidden otherwise. Here are some of the surveys you can have carried
out:

Mortgage valuation

This is a free service, that most lenders offer, that is just a valuation of the property for the mortgage lender. This isn’t a survey, and you won’t receive a report.

Condition reports

With a new build property, these are fairly common, and a good way to find out what condition your property is. Doesn’t include any advice.

Homebuyers survey

If your property appears to be in good condition, this survey will give you a property valuation, and check for any faults and repairs. It even includes a repair cost.

Full structural survey

This is the most in-depth survey you can get and is referred to as a ‘building survey’. This is best for older properties, or properties with extensions. It helps you challenge anything legally, and checks for faults, and includes repair costs.

Solicitors and conveyancing

When your offer gets accepted, the next stage of your house buying process is to use a solicitor/conveyancer who can take care of the legalities that buying a property involves.
But…what does a solicitor do?

Talking to the seller’s solicitor

On your behalf, your solicitor will reach out to the seller’s solicitor. The sellers solicitor will then provide them with a draft contract, and other items requested.

Conveyancing process

Investigations and contracts

Once they’ve completed their investigations, if you’re happy to proceed, they will finalise your contract and explain it in further details to you.

Contract exchange

Your solicitor will be paid a fee to exchange your contracts on purchase. Once you’ve done this, you’re now legally entering a binding contract to buy the property.

The final stage of the conveyancing process will see your solicitor: receive funds from the lender, finish repaying any existing loan or mortgage that may be a condition of your offer, pay the stamp duty and any other fees, transfer the funds to the seller’s solicitor, and finally ensure the keys to the property are made available when completion takes place. Your adviser can recommend you a solicitor during your mortgage process.

Property chains

What is a property chain? A property chain refers to a group of people who are connected since they’re buying and selling each others properties.

Each person selling the property (also known as a vendor) should have a designated solicitor, lender, and estate agent attached.

As a result, if one vendor is behind in any capacity, whether it’s a missed phone call, or a late filled document, the whole process can be slowed down and delay everyone else in the chain.

What fees will I be paying?

Aside from your deposit and mortgage repayments, there are other costs involved in buying a house you’ll want to take into account so you’ll have money available from the start.

Valuation Fee

Depending on the survey you decide to go with, you’ll be charged different costs. The more in-depth the survey, the higher your fee will be.

Removal Costs

It’s not mandatory, but if you need help with the move, you can consider removal services. Just keep in mind, these tend to be more expensive during spring/summer.

Legal Fees

A solicitor/conveyancer is crucial when it comes to completing your mortgage. The solicitor deals with all contracts, documentation, searches etc.

Product Fees

You’ll find that some mortgages come with a product fee that you’ll need to pay either upfront or tagged onto the cost of your mortgage.

Insurance

Ensure that you take out buildings and contents insurance when taking out your mortgage. This will protect your home in the case of any damage, and your belongings. This is something you can talk to your adviser about. There are also other insurance you can use to financially protect you and your home in the case of illness.

Arrangement Fees

Keep an eye out for the administration charge. This is a charge made by the lender for arranging the credit of your mortgage.

Stamp Duty

If you would like to learn more about Stamp Duty click here.

Mortgage Adviser Fee

Most mortgage brokers charge a separate fee for their specialist knowledge, and for helping you get your mortgage and new home.

Applying for your mortgage

Whether you are a first-time buyer, moving home or looking to re- mortgage, our specialists are here to make the process easier, so you can get on with everyday life.

With everything under one roof, you can rest assured that we can find a mortgage deal that will suit your needs.

Ready to apply for your mortgage? Our team are on hand to help you with expert advice from start to finish. Arrange an appointment with one of our Mortgage Advisers.